The several upcoming flourishing businesses and the increased purchasing power have brought forward newer opportunities, including small-scale franchisees. This attractive avenue for business involves giant industries and brands bringing their business to the streets through small business owners. 

Among the many companies doing this, the dairy giant Amul has also developed various opportunities for young entrepreneurs. Amul full form is (Anand Milk Union Limited) was founded in 1946 through the efforts of Tribhuvandas Patel.

Getting an Amul franchise is quite simple. Individuals who have a sense of entrepreneurship and a small capital base can directly apply for the franchise. 

If they do not have the required capital to start, they can also opt for an MSME loan from the government to kick start their franchise. 

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How to Get an Amul Franchise

Getting an Amul franchise primarily involves setting up a pre-built shop in an active location with several potential customers. The cost of setting up usually comes somewhere between Rs. 1.50 lakh to Rs. 6.00 lakh depending upon the kind of shop and setup. 

The setup costs can be easily managed with an MSME loan and registering under the Udyog Aadhar Memorandum. Apart from that, individuals taking up the franchise will also have to take care of all the operational costs. 

All Amul products are sold exclusively by the franchises. They are the outlets of the company, with an area of 100 to 300 m2. It is located in markets, schools, hospitals, train stations, municipal gardens, etc., which constitute potential areas within the town.

The turnover of these franchises depends on various factors, including the shop’s location, operational costs, etc. However, as per Amul’s official release, the Amul franchise profit per month lies between Rs. 5 lakhs to Rs. 10 lakhs. Once the setup is functional and running, this revenue will be useful in paying off the MSME loan. 

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Applying for an Amul franchise

The application process for setting up an Amul franchise can be completed in four simple steps. Since the whole process is online, individuals can easily apply for an Amul Franchise from anywhere. 

The Amul franchise process involves the following steps: 

  • Step1: Visit the official website of Amul at  http://www.amul.com/ to start the application process. 
  • Step2: At the bottom right corner of the page, you will find the tab for “Amul Parlours”. Select the option to proceed. The following page includes all the essential information regarding the franchise initiative by Amul. 
  • Step3: The page also consists of a few links related to the Amul parlor franchise program. Click on the third link, i.e., “Online form for Amul Parlour”. 
  • Step4: Users are required to fill up the details mentioned on the form and provide all the required documents. Once you have filled the form, submit the form to complete the registration process. 

To understand more about the Amul franchise registration process, get more information regarding the application and program by calling customer care for Amul.

It is also noteworthy that there are several unauthorized websites, individuals operating under the company’s name, and practicing fraudulent means for monetary gains. Thus, it is better to stick to the official website to complete the registration instead of getting help from intermediaries. 

Perks

Amul wholesale dealers do the restocking of the shops. It is also noteworthy that the entrepreneurs do not owe Amul any royalties. Also, Amul does not need the franchisee to share the revenue.

Individuals operating the franchise get the retail margin, the amount of which varies from product to product. 

There is a corresponding margin for each product in Amul. As per the retail margins stipulated by the organization, the owners will receive retail benefits of 2.5% from pouch milk, 20% for ice creams, and 10% for various dairy products.

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It also states that for product-based recipes, such as butter, milk, cheese, cream ice cream scoops, baked pizzas, sandwiches, dark chocolate, hot chocolate drinks, etc., the retail margins are around 50%. 

Apart from the extra retail margins, Amul also offers parlor boy training, consumer offers, inauguration support, subsidies on purchase of equipment, free signage, etc.

However, the franchisee would bear recurrent expenses, such as employee costs, electricity costs, shopping rental, etc., from the gross retail margins.

Opportunities

Amul offers several job opportunities to individuals who are looking forward to starting as an entrepreneur. People can apply for setting up a franchise for Amul Parlour or Amul Ice-Cream Scooping Parlour. If someone is low on finances, they can apply for the MSME loan from the government to cover the costs of setting up. 

For an Amul parlor franchise, the average investment is around Rs. 2 lakhs. Individuals are required to submit a non-refundable demand draft or cheque of Rs. 25,000 issued in the name of GCMMF at the time of applying. Other costs include the cost of setting up, renovation and upgrading or buying the equipment. These can be somewhere between Rs. 1,00,000- Rs. 1,70,000. 

Individuals looking to set up Amul Ice-Cream Scooping Parlours need to invest a little more. The security deposit, in this case, would be a non-refundable fee of Rs. 50,000.

Similarly, the renovations and setting up of the shop would also need more capital. The average cost for setting up comes somewhere between 4 lakhs to 5.5 lakhs. 

Paying for all these setup costs from savings can be difficult. Thus, individuals should look for government financial aids such as an MSME loan or get in touch with companies that help provide financial solutions for businesses and franchises. 

Financial aid

As explained in the setup costs above, the total cost of setting up a franchise after completing the registration comes somewhere between 1.5 lakhs to 6 lakhs, excluding the security deposits. For most young adults arranging the whole amount at once would be a problem. 

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Thus, it is advisable to complete the MSME registration before applying for the franchise to get the MSME loan approved on time.  
If you are looking for financial aid to set up your business, we are here to help. At ZipLoan, we offer an MSME loan to small and medium-sized businesses with minimal documentation. For more information on getting an MSME loan, contact us today.

Amul Consumer Helpline:

  • For Inquiries regarding Amul Parlor/Franchise email to retail@amul.coop or you can call at Amul franchise contact number 02268526666
  • For Inquiries regarding Amul Distribution please email to distribution@amul.coop or you can call on 02268526666.

Frequently Asked Questions:

How much does the Amul franchise cost in India 2021?

For Amul Outlet, Amul Railway Parlor, or Amul Kiosk, one has to invest about Rs 2 lakhs. Out of this, Rs 25,000 is non-refundable brand security, Rs 1 lakh is spent on renovation and 75,000 rupees is spent on equipment. For the second franchisee- Amul Ice Cream Scooping Parlor- there is an investment of Rs 5 lakh.

How can I get a franchise of Amul?

The entrepreneur will be required to remit non-refundable brand security of Rs. 25,000; followed by the investments for renovation and equipment which would cost around Rs. 1,00,000.

Is it profitable to open Amul franchise?

Yes, it is. The turnover could be in the range of Rs 5 lakh to Rs 10 lakh per month according to Amul. One can take up Amul’s franchise and earn a good amount every month.

What is the Full form of Amul?

Kaira District Milk Union Limited (later renamed to Amul – Anand Milk Union Limited) was founded in 1946 through the efforts of Tribhuvandas Patel. Amul’s foundation was a significant contributor to the white revolution in India.

Who is the owner of Amul company?

Tribhuvandas Patel is the founder of Amul.

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